International Business Strategy: HSBC - Essay Example

International Business Strategy Table of Contents Introduction 3 History of the Company 3 Structural Features of the Industry 4 Competitive Advantagefor HSBC 5 Structure of HSBC and Its Success within the Financial Investment and Banking Industry 6 Conclusion 7 References 8 Introduction Global business operations have changed significantly in the recent years owing to advancement of technology and augmentation of competition in various sectors of the world. In order to sustain for a longer duration within the marketplace, companies are required to ensure maximum diversity within products and/or services of their businesses (Wheelan & et. al., 2011). Correspondingly, this particular study will focus on comprehending the strategic positioning of HSBC in the present day business environment. The company is one of the noteworthy names within the financial sector of the world. The company is currently headquartered in London, UK. History of the Company The company i.e. Hongkong and Shanghai Banking Corporation (HSBC) is one of the noteworthy names within the financial sector of the world. The company initially started its operations in the Chinese and Indian market. It was during the year 1865 that the financial company had been established. Since then the company has experienced tremendous growth in its operations with the establishment of the business extensively within the worldwide market. In the present day context, the company has its operations established in some of the topmost nations of the European and Asian continent. The printing of the first banknotes of the country i.e. Thailand is also credited to HSBC holdings. For the period in between 1876 to 1902, HSBC was one of the leading institutions in the global financial sector. Though the company faced numerous challenges owing to the increased level of competition in the external market, it has been able to establish a unique name for itself within the financial sector of the world (HSBC Group, 2015). Structural Features of the Industry Evidently, HSBC operates in the financial sector. The company offer numerous ranges of products which includes financial products. The product line of the company is divided into four different parts in the global business sector. These product lines include HSBC Direct, HSBC Advance, HSBC Premier and HSBC net. It must be crucial to mentioned that the company segregate its product on the basis of market segmentation. This can be justified from the fact that HSBC Direct deals with the approach of attracting the customers to buy the products and services of the company through online means. This depicts the approach of the company to interact or connect with large base of customers situated in various nations of the world. Correspondingly, HSBC net provides a different line of products for the potential customers within the financial sector of the world. Within this particular section of the business, the management intends to provide services like money transfer and foreign currency conversion for customers situated in different regions of the world (HSBC Group, 2015). In similar regard, within the business domain of HSBC Advance, the management of the company offers financial products for the customers in the worldwide market especially including the customers falling under working professionals. This aspect further enhanced the customer base of the business in a significant manner. Correspondingly, HSBC Premier deals with products including premium financial products in the global business sector. Hence, it is quite apparent that different customers are dealt differently by the company in the global financial sector. All these products of the business directly relates to the concept of investment, which is one of the prime product that has enabled the company to gain competitiveness (HSBC Group, 2015). Competitive Advantage for HSBC Gaining competitive advantage in any particular industry sector is one of the most important aspects for any particular business in order to gain long term sustainability and strong market presence. In this regard, HSBC is regarded as a particular business that has strong competitiveness within the financial sector owing to efficient use of the available resources. The strategy of the business mainly aligns with its approach of conducting business in an extensive manner globally. In the subsequent years, the management of the company is expected or estimated to conduct business operations in more than 35 destinations or markets of the world. With this particular approach of the company, the management intends to leverage the opportunity ensured by 85% growth in the overall global financial sector. The company intends to expand and flourish its operations in the markets of Asia, Latin America along with the African continent. Notably, the competitiveness of the operations of the company can largely be determined with the help of the approach of the diversification of the business at large (HSBC Group, 2015). This can be justified from the diversification of the company in the petroleum sector, which has further enabled it to gain competitiveness over other firms in the Australian market (Macdonald-Smith, 2014). The company has also been targeting to establish its operations in some of the biggest export markets of the world including the USA, the UK and Germany among others. This has also been one of the major features for the company to build competitive advantage in the global financial business sector. Ireland is also considered as one of the potential markets where the company seeks to explore its operations in a considerable manner altogether. In order to ensure maximum competitiveness within the business, HSBC has focused on investing in such markets, which has witnessed noteworthy export development in the recent years (HSBC Bank Plc, 2012). There are certain strategic capabilities of the company with regard to worldwide investment and banking, which must not be ignored. Among the core competencies of the company that could be highlighted include efficient teamwork among the human resources towards attaining the goals of the company in the domain of investment and banking (The University of Sheffield, n.d.). Structure of HSBC and Its Success within the Financial Investment and Banking Industry HSBC operates within the ever changing and challenging banking industry. The sustainability of the company within the sector over the years has been largely aligned with its structure. The company follows a systematic structure where each of the department is segregated on the basis of their functioning and job roles of the people involved. The structure of operations of the companies is segregated on the basis of the context of the region in which it operates. For example, the company has diverse structure to follow for commercial banking and global baking operations (HSBC, 2015). With this diverse business sector, the management of the company or the overall group has been able to meet the changing demands of the customers in a significant manner, which has boosted the business in a considerable manner altogether. Within the banking and investment sector of the word, HSBC is deemed to be one of the notable names. However, owing to certain ineffective decisions, the management of the company has faced financial crisis scenario in the recent years. Arnold (2015) affirmed that owing to certain ineffective lending policies, the company has been in the verge of financial crisis in the recent times (Arnold, 2015). Correspondingly, Arnold (2014) also depicted that the risk averseness of the employees of the company in the financial investment sector has also threaten the operations of the business in a considerable manner altogether (Arnold, 2014). Conversely, it must also be mentioned that the company has shown considerable growth in revenue and overall business profits in the last five years of business operations. This can depict the growth and success of the company (The Financial Times Ltd, 2015). Conclusion From the overall analysis of the paper, it can be concluded that HSBC has established itself as one of the leaders in the global financial sector. The company has witnessed immense development in enhancing the competitiveness of the business by establishing its investment operations in various developing nations of the world. References Arnold, M., 2015. Dark Days Turn Darker for HSBC as Profits Dive. Financial Times. [Online] Available at: http://www.ft.com/intl/cms/s/0/7411ce86-bb7e-11e4-b95c-00144feab7de.html#axzz3TUo2IfoE [Accessed March 05, 2015]. Arnold, M., 2014. HSBC Chairman Douglas Flint Warns Of ‘Danger’ In Staff Becoming Risk-Averse. Financial Times. [Online] Available at: http://www.ft.com/intl/cms/s/0/5160331a-1bb9-11e4-adc7-00144feabdc0.html#axzz3TUo2IfoE [Accessed March 05, 2015]. HSBC Group, 2015. Our Strategy. Home. [Online] Available at: https://www.hsbc.com/about-hsbc/our-strategy [Accessed March 05, 2015]. HSBC, 2015. Structure and Network. Country Contacts. [Online] Available at: http://www.hsbc.com/about-hsbc/structure-and-network [Accessed March 05, 2015]. HSBC Bank Plc, 2012. Trade Forecast Reports. Home. [Online] Available at: https://globalconnections.hsbc.com/united-kingdom/en/tools-data/trade-forecasts/ie [Accessed March 05, 2015]. Macdonald-Smith, A., 2014. HSBC Commodities Boss Backs Australias Competitive Edge On LNG. Home. [Online] Available at: http://www.smh.com.au/business/the-economy/hsbc-commodities-boss-backs-australias-competitive-edge-on-lng-20141203-11zdqg.html [Accessed March 05, 2015]. Reuters, 2015. HSBC Holdings PLC (HSBA.L). Home. [Online] Available at: http://www.reuters.com/finance/stocks/overview?symbol=HSBA.L [Accessed March 05, 2015]. The University of Sheffield, No Date. Core Competencies. Home. [Online] Available at: http://www.careers.dept.shef.ac.uk/pdf/talkHSBC.pdf [Accessed March 05, 2015]. The Financial Times Ltd, 2015. HSBC Holdings PLC. Home. [Online] Available at: http://markets.ft.com/research/Markets/Tearsheets/Financials?s=HSBA:LSE [Accessed March 05, 2015]. Wheelan, T. L. & et. al., 2011. 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